smallbusiness
Junior Member
What is the name of your state? Massachusetts
I am on the verge of filing for a Chapter 11 bankruptcy.
My company has a partnership agreement with another company to work together and we were supposed to form a joint venture. Instead, they went off and did a lot work without my company, and took money that is partially ours.
As part of a separate matter, they are seeking to enforce a verbal agreement which they say terminated our partenrship agreement, although there is nothing in writing to support their efforts to tear up our partnership agreement. But I do need to respond to their motion in the next two weeks, and in MA (since the parties are corporations) that means hiring an attorney. And I don't have the money.
My question is that 1) since the contract with the other company is a valuable asset of our company, and 2) since I don't have the legal fees to fight them to enforce the contract, what would be the effect of a Chapter 11 on this partnership agreement as an asset of my company? Would it freeze their efforts to void our partership agreement?
I have already told them that from my position as a fiduciary for my creditors, I have to oppose the termination of the contract. But is there any way to use the Chapter 11 to protect this asset of my company? Does it matter if I file for Chapter 11 before or after the court is asked to rule on their motion that would void the agreement? I need to make some fast decisions. Thanks.
I am on the verge of filing for a Chapter 11 bankruptcy.
My company has a partnership agreement with another company to work together and we were supposed to form a joint venture. Instead, they went off and did a lot work without my company, and took money that is partially ours.
As part of a separate matter, they are seeking to enforce a verbal agreement which they say terminated our partenrship agreement, although there is nothing in writing to support their efforts to tear up our partnership agreement. But I do need to respond to their motion in the next two weeks, and in MA (since the parties are corporations) that means hiring an attorney. And I don't have the money.
My question is that 1) since the contract with the other company is a valuable asset of our company, and 2) since I don't have the legal fees to fight them to enforce the contract, what would be the effect of a Chapter 11 on this partnership agreement as an asset of my company? Would it freeze their efforts to void our partership agreement?
I have already told them that from my position as a fiduciary for my creditors, I have to oppose the termination of the contract. But is there any way to use the Chapter 11 to protect this asset of my company? Does it matter if I file for Chapter 11 before or after the court is asked to rule on their motion that would void the agreement? I need to make some fast decisions. Thanks.
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